By E. Janene Geiss
Philadelphia, Nov. 29 - Lehman Brothers Holdings Inc. priced $2.6 million of reverse exchangeable notes due May 30, 2008 linked to the common stock of American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 8.05% for an annualized rate of 16.1%. Interest is payable monthly.
The payout at maturity will be par unless AIG shares fall by more than 20% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of AIG shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | American International Group, Inc. (Symbol: AIG)
|
| Amount: | $2.6 million
|
| Maturity: | May 30, 2008
|
| Coupon: | 16.1%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If AIG shares close below the trigger price during the life of the notes and finish below the initial share price, 18.352 AIG shares or equivalent cash value; otherwise, par
|
| Initial share price: | $54.49
|
| Trigger price: | $43.592, 80% of initial share price
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.25%
|
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